Selling at Auction Vs a Internet House Buyer
In the current housing climate many property sellers are deciding to consider alternative methods when it comes to selling their property. Using a traditional estate agent is the most obvious route, however it is tricky to sell at the moment and many are unaware that there are quite a few different options available. Each different method for selling your home has different pros and cons which will be discussed.
At the Auction House
A very well known option and probably a motivated sellers first port of call if they can’t achieve a normal sale would be to consider going to auction, this is a very effective method of disposing of your property as if your property is sold full completion has to usually take place within a month. Buyers are currently commanding a large discount often somewhere between 30 – 40% discount to the true market value. This may sound like a lot but when you consider that around 50% of the competition at auction are repossessed properties that the banks are pretty much dumping buyers do have a lot of choice. Also, buyers at auction are special as they will either purchase with cash or use a risky bridging loan which will paid off if the buyer can get a mortgage on the property, Risky stuff from the buyer so even more reason to command a large discount. Probably the largest information source on property auctions can be found at the Eigroup.
Another Option is to use a Internet House Buyer
The most common offer for those who those who are searching to sell their house on-line is to receive a discount of 15-25% for a straight cash sale. To be fair if you were keen to sell a car then this level of discount may be OK to stomach. However, when you think of the value of a house you would realise that you’ll be losing out on tens of thousands. Also a major factor to consider when choosing a internet house buyer is how long will it take. There are two types of buyer, a true cash buyer who can complete in as little as a week or more commonly a buyer who uses a mortgage and that can take up to three months. It will be important for you to research the method that your buyer will be using to purchase your home and how long will it take.
There are also couple of options that are available where by the seller wouldn’t loose any equity value from the quick sale. They are both creative options so any home seller would need to think outside the box. You could enter your house into a shared ownership scheme. With shared ownership you would usually sell 60% of the house and keep 40% equity as a silent owner. This is technically selling part now and part later, usually in 10 years. This is a complex option so if you may wish to contact us to receive more information
For those who don’t have any equity at all or may even be in negative equity a Lease Option is one of the only methods allowing a seller to break free and move on with their life. In a nutshell the buyer, if they wish, will take over the liability of your mortgage.They do this with a long term lease with a option to fully purchase your home within a period of time usually 5 -6 years. If they don’t fully purchase the property then the seller will get the house back and would have at least had their mortgage catered for. There are many pros and cons to this option that should be considered. For some sellers with no equity, simply handing the keys over will give them the same net effect of selling when you are not expecting to make a profit.
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